Chainlink Founder Reveals the "Most Unusual Bear Market": RWA Explosion, No Systemic Collapse, Crypto Market Shifting Gears

Chainlink co-founder Sergey Nazarov stated that the current crypto market correction in 2026 is unlike any previous bear market. Although the total cryptocurrency market cap has fallen approximately 44% from the October 2025 high of $4.4 trillion, evaporating nearly $2 trillion in four months, this decline has not been accompanied by institutional-level collapses like FTX, which he views as an important sign of industry maturity.

Nazarov pointed out that past bear markets were often triggered by risk management failures or the collapse of large platforms, leading to systemic risk spreading. In this cycle, however, no major events have caused a chain reaction. This indicates that crypto infrastructure has become more resilient under liquidity contraction and falling prices.

He emphasized a second key change: the ongoing expansion of real-world asset (RWA) tokenization. Data shows that over the past 12 months, the total on-chain value of RWAs has increased by over 300%, and this trend has been largely unaffected by price volatility. Nazarov believes this demonstrates that RWAs have genuine demand beyond speculation, driving long-term development of institutional and on-chain financial infrastructure.

Despite improving fundamentals, Chainlink’s token LINK remains low, having fallen about 67% since the October 2025 high and more than 80% from its all-time peak in 2021. It currently hovers below $9. This “fundamental-price divergence” is also seen as a common feature at the beginning of a new cycle.

Several traditional financial analysts have offered similar views. Gautam Chhugani of Bernstein called this correction “the weakest bear market in Bitcoin history,” viewing it more as a confidence crisis driven by sentiment and liquidity pressure. Others point out that the sell-off is also influenced by macro factors, including expectations of a slowdown in the AI industry and potential tightening of financial conditions after Kevin Warsh’s appointment as Federal Reserve Chair.

In Nazarov’s view, on-chain transactions, RWA tokenization, and real-time data infrastructure are reshaping the value structure of the crypto industry. If this trend continues, the total value of real-world assets on-chain could surpass that of traditional crypto assets in the future, shifting the industry focus from price speculation to a new stage driven by real-world applications.